Updating Australia's Migration System Summary | Federal Budget 2023-2024

The Minister for Home Affairs, Clare O’Neil, gave a speech on 27 April 2023 announcing the release of the Review of the Migration System – Final Report 2023 and a corresponding intention of the Albanese government to implement significant reforms to the Australian migration system in the coming years.

In her speech, Clare O’Neil stated that Australia’s current migration system is ‘broken’ and, specifically that, ‘we face big national challenges that migration can help us solve’.

She outlined that the current migration system is failing in delivering the skills that Australia needs to address these challenges, failing to provide migrants with permanency and opportunities for Australian citizenship and is not aligned with Australian values.

The following actions were announced as part of the first initiatives to fix Australia’s migration system:

  1. Increasing the temporary skilled migration income threshold to $70,000.

  2. A pathway to permanent residency for temporary skilled workers.

Increasing the Temporary Skilled Migration Income Threshold

An employer seeking to nominate an individual for a Temporary Skill Shortage (subclass 482) visa, Employer Nomination Scheme (subclass 186) visa or a Regional Sponsored Migration Scheme (subclass 187) visa must ensure that they are paid the ‘annual market salary rate’ and that it is not less than the temporary skilled migration income threshold (‘TSMIT’).

Previously, the TSMIT was $53,900 and from 01 July 2023, this will increase to $70,000.

The purpose of this increase, as stated by Clare O’Neil, is to ensure that the program is a ‘skilled worker program, not a guest worker program’.

Pathway to Permanent Residency (PR) for Temporary Skilled Workers

Currently, only Temporary Skill Shortage (subclass 482) visa (‘TSS’) holders who have worked for their employer for at least 3 years while holding these visas have a pathway to permanent residency through either the Employer Nomination Scheme (subclass 186) visa or a Regional Sponsored Migration Scheme (subclass 187) visa. However, the Employer Nomination Scheme (subclass 186) visa pathway is only accessible until 01 July 2024. Similarly, the Regional Sponsored Migration Scheme (subclass 187) visa is exclusively available to individuals who held a TSS visa in the medium-term stream on 20 March 2019 or were applicants who were subsequently granted this visa.

Clare O’Neil has announced that by the end of 2023, this will no longer be the case and that TSS holders will have a pathway to permanent residency.

It is important to note that she stated that this will not result in more people, ‘it simply means that a group of temporary workers who have been denied even the opportunity to apply for permanent residency will be able to do so’.

What Is to Come

It is clear from Minister Clare O’Neil’s speech that these are only the first of many changes to come regarding Australia’s migration system and immigration laws may change at any time. Therefore, if you are considering applying for an Australian visa it may be advantageous to consult an immigration lawyer or an Accredited Specialist in immigration law that can provide you with advice based on the current laws.

How Can Agape Henry Crux Assist

Contact us if you require any assistance in relation to acquiring a skilled migration visa.

At Agape Henry Crux, our Accredited Specialist(s) Immigration Lawyers and our team of immigration lawyers and migration agents are specialised in handling highly complex matters.  You may schedule an appointment with one of our lawyers or agents to seek professional advice by calling 02-8310 5230 or email us at info@ahclawyers.com

We speak fluent English, Mandarin, and Malay. If this isn’t your language, we can also help you arrange an interpreter. 

 This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.